Property, net

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property, net:

Property, net at December 31, 2023 and 2022 consists of the following:


	2023		2022
Land	$	1,388,345	$	1,425,211
Buildings and improvements	6,171,027		6,378,736
Tenant improvements	747,246		711,007
Equipment and furnishings(1)	188,493		186,767
Construction in progress	340,496		218,859
	8,835,607		8,920,580
Less accumulated depreciation(1)	(2,935,118)		(2,792,790)
	$	5,900,489	$	6,127,790

(1)Equipment and furnishings and accumulated depreciation include the cost and accumulated amortization of ROU assets in connection with finance leases at December 31, 2023 and 2022 (See Note 8—Leases).

Depreciation expense for the years ended December 31, 2023, 2022 and 2021 was $265,140, $271,494 and $282,158, respectively.

The (loss) gain on sale or write down of assets, net for the years ended December 31, 2023, 2022 and 2021 consist of the following:


	2023		2022		2021
Property sales(1)	$	13,380	$	386	$	113,657
Write-down of assets(2)	(153,495)		(15,045)		(67,344)
Land sales	5,592		22,357		29,427

	$	(134,523)	$	7,698	$	75,740

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(1)For the year ended December 31, 2023, includes gains related to the sale of The Marketplace at Flagstaff and Superstition Springs Power Center and includes gains related to the sale of La Encantada and Paradise Valley Mall during the year ended December 31, 2021 (See Note 16-Dispositions).

(2)Includes impairment losses of $144,656 on Fashion Outlets of Niagara Falls and $7,880 on Towne Mall during the year ended December 31, 2023. Includes impairment loss of $5,471 relating to the Company's investment in MS Portfolio LLC (See Note 4—Investments in Unconsolidated Joint Ventures) and impairment loss of $5,140 on Towne Mall during the year ended December 31, 2022. Includes a loss of $28,276 in 2021 in connection with the assignment of the Company's partnership interest in The Shops at North Bridge (See Note 4—Investments in Unconsolidated Joint Ventures) and impairment loss of $27,281 on Estrella Falls during the year ended December 31, 2021. The impairment losses were due to the reduction of the estimated holding periods of the properties. The remaining amounts for the years ended December 31, 2023, 2022 and 2021 mainly pertain to the write off of development costs.

The following table summarizes certain of the Company's assets that were measured on a nonrecurring basis as a result of impairment charges recorded for the years ended December 31, 2023, 2022 and 2021 as described above:


Years ended December 31,	Total Fair Value Measurement		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)
2023	$	63,200	$	—	$	—	$	63,200
2022	$	18,250	$	—	$	—	$	18,250
2021	$	4,720	$	—	$	4,720	$	—

The fair value relating to the 2021 impairments were based on sales contracts and are classified within Level 2 of the fair value hierarchy. The fair value (Level 3 measurement) related to the 2022 and 2023 impairments were based upon an income approach, using an estimated terminal capitalization rate of 9.5% and 13%, respectively, a discount rate of 10.5% and 14.5%, respectively, and market rents per square foot of $12 to $250. The fair value is sensitive to these significant unobservable inputs.